KEY POINTS

• Dangote states that refinery opponents made up of “cabals” and oil importers continue to resist his refinery plans.
• The oil companies raise local crude prices to levels that create pressure for purchasing expensive imported petroleum products.
• The price increase throughout the year has resulted in profit decreases because former fuel subsidy policies have been abolished.

Head of the Dangote Group Alhaji Aliko Dangote fights daily against powerful opponents who stand against his $20 billion refinery investment project.

At a Lagos investor forum on Friday African billionaire Aliko Dangote declared that he remains actively involved in combat with established groups which made fortunes through fuel imports and subsidy payments over many decades in Nigeria.

His 650,000 barrels per day refinery situated at the Lekki Free Trade Zone faces ongoing attempts at attack from specific interest groups he has charged.

Semafor reported Dangote as saying these opposition groups who created resistance against fuel subsidy removal operate to make the refinery run inefficiently.

IOCs as stumbling block

Through his statements Dangote indicated IOCs operate as his main opponents because they refuse to transact crude purchases at standard local market prices which requires his company to acquire crude from distant locations up to the United States.

The battle continues although victory remains out of reach for the time being. According to Dangote he has battled through every day since his youth and he remains confident about eventual victory.

The business magnate keeps emphasizing the importance of his refinery since September 2023 because it serves Nigeria and all countries in sub-Saharan Africa. In his view petroleum industry regulators as well as several oil marketers actively interfere with this project.

Dangote raised concerns about the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) giving import permits to marketers for inferior petroleum products that ruined his domestic refining objectives.

The statements issued by Dangote emerged when the downstream petroleum sector of Nigeria experienced growing tensions. A crude oil payment system launched by President Bola Tinubu enabled the Dangote Refinery to acquire local crude which resulted in substantial petrol price decreases until prices dropped to about N860 per litre. Reports indicate the deal between the government and foreign suppliers has been halted at this time.

According to Devakumar Edwin who leads Dangote Industries’ oil and gas division the International Oil Companies aim to “deliberate and willful frustrate” Nigerian oil customers by establishing unfair prices for their crude products. Local refining of refined products needs strong support from Nigerian authorities because otherwise the country will continue to depend on imported refined products.

IPMAN assures support to Aliko Dangote’s refinery

IPMAN decided to stand with Dangote in support of his venture when faced with these circumstances in Nigerian markets. The Aliko Dangote’s refinery receives support from IPMAN Publicity Secretary Chinedu Ukadike despite the challenges that lower prices cause to standard retail profits.

Ukadike explained that this business development represents standard market competition. The independent marketers show unlimited backing to him across every dimension of his activities.

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) asked for balanced business practices instead. Billy Gillis-Harry leads PETROAN while advocating for fair competition which he defines as natural and healthy. The executive requested the Federal Government to maintain regular crude oil deliveries to all refineries especially the Dangote facility.

According to Gillis-Harry the assessment of the naira-for-crude deal suspension should proceed without political interference. The Dangote refinery executives simply want their players to handle their business without any disputes according to Mr. Dangote.

Through his perseverance Dangote promises complete operational capacity which will turn Nigeria from an oil importing country into a regional refining hub for Africa and other continents.